Age-old disc brake question.

First, I'd like to say that everything I've learned about disc brakes, I got from here.

I purchased brand new XT brakes/bleed kit and installed/bled them myself. First time I ever do that. They work but, pads rub and the lever is spongy. Rotors are true and I've tried the "loosen the bolts, squeeze the lever and re-tighten bolts" method. That helped a bit but still rubbing.
What can I do?

New system? Did you add the fluid from the master cylinder or the caliper? When I put on a new Hayes master cylinder with an old caliper this is how I did mine.

I pushed the pistons in with a box wrench or other means making sure they were flush with the casing. I installed a set of old pads and put a piece of plastic just big enough to squeeze in-between the pads. I hooked up the bottle of good fluid to the master cylinder and the drain hose to the caliper to drain into a red solo cup. i cracked open the caliper bleed screw on the caliper and lightly squeezed the bottle till a good flow of oil come out. Keeping pressure on the bottle I squeezed the brake lever a few time to get he air out. Again, keeping pressure on the bottle I closed the caliper bleed screw and added more fluid to the bottle. I then reopened the system and squeezed more oil through just to make sure I got all the air out then I close the bleed screw. I cleaned up with isopropyl alcohol. To center the caliper on the rotor I did the loosen the mounting bolts and pull the lever a few times. While holding the lever I lightly tightened the mounting bolts AND eyeballed for fine tuning the centering..... sorry for the the long description, hopefully what ever it is I wrote makes sense. always refer to the manufactures recommended bleed procedures